Mortgage rates today are way below normal. Or are they?
Finance Minister Jim Flaherty called Canada`s low interest rates an `anomaly` last week, echoing warnings that other government officials have been making since 2009. But one of the country`s best-known economists believes today`s rates are closer to normal than many think.
Benjamin Tal, deputy chief economist at CIBC, caught viewers off guard in a recent webcast with a mortgage company TMG The Mortgage Group. Whereas most economists have been calling for the Bank of Canada to lift its 1 per cent key lending rate back to a more normal 3 per cent, Mr. Tal thinks that these days, `normal` is significantly less.
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